# RDP 8611: The Effectiveness of Fiscal Policy in an Economy with Anticipatory Wage Contracts Equation (A6)

$$\dot{w}(t)=\frac{2}{T}(\frac{\rho}{1-\rho})(y(t)-y(t))+(\widehat{\pi}(t)-{\pi}^{*}(t))$$

$$\dot{w}(t)=\frac{2}{T}(\frac{\rho}{1-\rho})(y(t)-y(t))+(\widehat{\pi}(t)-{\pi}^{*}(t))$$